Macedonian central banker sees steady or higher rates

[Risto the Great]

SKOPJE, Sept 18 (Reuters) - Macedonia's central banker governor said on Thursday that the country's interest rates would likely stay the same or go up as the landlocked Balkan country targets six percent inflation by December.
In an interview with Reuters in the capital Skopje, Petar Goshev said he expected Macedonia's GDP to grow 5.5 percent for the year, above initial estimates, and said the country would not suffer any direct consequences of recent turmoil on world financial markets.
"Macedonia will not be influenced directly from this financial turbulence because Macedonian financial institutions are not exposed," he said. "It is one of the advantages of our underdeveloped financial sector."

http://www.guardian.co.uk/business/feedarticle/7807744

... Nice to go it alone in times like these!

[Pelister]

The inflation figure seems a bit high. What do you think?

The fact that the country has a tiny economy is such a benefit to it at this stage.

There was recent news of a U.S motor parts manufacturer opening up in Ohrid.

Just one manufacturer like this moves into a town can have a HUGE impact on the local economy. It means jobs, more money, more people coming in, they need somewhere to stay ... etc.

[Risto the Great]

Nah, that is Growth not Inflation. It could cause inflation but an economy like Macedonia can do with the growth. China has to maintain 10% GDP just to stay afloat!

[Pelister]

The growth is astounding. Anything over 4 or 5 per cent is genranlly considered to be pretty high.

Looks like they are doing something right over there.

[Risto the Great]

Whilst I am sure Macedonia's enemies would be happy to see it fail, the country does not have some of the baggage of other countries in Europe and also has significant depth to rise above its present economic situation. Some of its financial practices far outweigh Australia's best. The only way can be up.

[George S.]

Just ask the Macedonian people about their financial hardships and they will tell you.Looks can be deceiving.